Polymarket Blocks French Users Amid Government Investigation Into Gambling Law Compliance

Polymarket, a leading blockchain-based prediction platform, has restricted access to French users as part of a government investigation into its compliance with national gambling laws, according to local media reports.

French users are now unable to access cryptocurrency platform Polymarket as part of a government investigation into its compliance with national gambling laws, multiple local media outlets reported on November 22.The platform, which allows users to bet on real-world events using cryptocurrency, blocked French users on Tuesday. The move comes amid increased scrutiny from France’s national gaming authority, known as the ANJ.

French crypto news outlet The Big Whale was one of the first to report the block, adding that some users were able to bypass the restriction using virtual private networks (VPNs). The investigation reportedly began after a French investor placed a significant bet on Donald Trump winning the 2024 US presidential election, which sparked a huge wave of activity on the platform.

Polymarket’s global reach and use of crypto have raised questions about its legal status in jurisdictions with strict gambling regulations, such as France. Neither Polymarket nor ANJ responded to requests for comment.

ANJ, which oversees online betting and gambling in France, is known for strictly enforcing national laws. Its investigation into Polymarket highlights the challenges decentralized platforms face when navigating regulatory environments.

Polymarket’s Rise, Regulatory UncertaintyPolymarket rose to prominence for its innovative use of blockchain technology. The platform allows users to create and participate in markets that enable them to predict the outcome of anything from elections to sporting events.

The platform operates on the principle of decentralization, being governed by smart contracts rather than traditional intermediaries. However, this innovation has attracted the attention of regulators in multiple countries, including the United States.

The French investigation could set an important precedent for prediction platforms operating in highly regulated jurisdictions. Observers note that platforms like Polymarket must navigate a diverse regulatory landscape, with laws varying significantly from country to country.

While Polymarket’s move to block French users might be seen as a step toward compliance, the fact that the restriction can be easily bypassed with a VPN raises questions about the effectiveness of such measures.

This highlights a broader challenge for decentralized platforms in addressing regulatory concerns without compromising their core principles. The outcome of ANJ’s investigation may offer further insight into how regulators view decentralized marketplaces and the compatibility of such platforms with existing gambling laws. For the time being, Polymarket’s move signals a cautious approach as it attempts to navigate the complexities of global compliance.